FX.co ★ Technical analysis of Gold for May 25, 2016

Gold price moved lower to new lows near $1,220 just below our short-term target of $1,230. Price remains in a bearish trend but I prefer to take profits now in order to wait for the bounce to re-sell for the bigger correction target below $1,190.

Black line - long-term resistance

Blue lines - bearish channel

Gold price remains inside the bearish channel and below the Kumo. The stochastic oscillator is providing our first bullish divergence signals. I could see price move even towards $1,215 but overall I expect a bounce back above $1,230 to be seen soon.

The weekly chart confirms our bearish view and price looks to be heading towards our target of the upper cloud boundary and the kijun-sen (yellow line indicator). We might see a bounce but trend remains bearish and I believe that only below $1,200 we should think again of the bullish scenarios.